- Bitstamp will cease trading seven altcoins in the U.S., citing a “dynamic regulatory environment” and aiming to preempt potential regulatory actions.
- The exchange’s decision reflects the challenge faced by U.S. exchanges in balancing revenue with regulatory compliance
- Bitstamp’s users can still hold and withdraw the delisted tokens even after trading stops
Crypto exchange Bitstamp will permanently halt the trading of seven alt coins in the U.S. at the end of the month, citing the “dynamic regulatory environment.” The coins, including big hitters such as SOL and MATIC, will be removed on August 29 as Bitstamp seeks to remove the possibility that it will be pulled up by U.S. regulatory bodies for sales of securities. While removing the coins now doesn’t stop agencies such as the Securities and Exchange Commission from taking action against Bitstamp for prior sales, it does show that the exchange is doing what it thinks best to comply in the absence of any clear guidance.
SOL and MATIC Among the Coins for the Chop
Bitstamp announced its move in a blog post on Tuesday where it listed the seven coins for the chop in the U.S.: AXS, CHZ, MANA, MATIC, NEAR, SAND and SOL. This must have been a difficult call to make, given that the likes of MATIC and SOL are prominent coins which might have brought decent revenue in a bull market, while CHZ and NEAR also have large followings.
The exchange didn’t feel the need to explain exactly why it was delisting the coins, merely saying that it was “taking into account the dynamic regulatory environment” when it made its decision over coin listings:
Update for our US users 📢
Starting August 29: AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL trading will be halted after evaluating recent market developments.
Execute any open trades. Holding and withdrawing tokens afterwards will be unaffected.
More info:…
— Bitstamp (@Bitstamp) August 8, 2023
While users won’t be able to trade the tokens after August 29, the exchange has clarified that users can still hold them in their accounts and withdraw them at any time.
Bitstamp’s move isn’t unusual, with other U.S.-serving exchanges also trying their best to balance revenue with potential action from regulators, something that will only increase until proper guidelines are in place.
